TABLEOF CONTENTS Pages 1. GEOLOGICAL SERVICES DIVISION .......................................... 1 1.1 Geological Exploration ........................................................... 2 Mineral Promotion................ ................................................... 1.2 3 1.3 UNDPMineral Promotion Project .......................................... 4 1.4 Geological Atlas of Guyana.................................................... 4 1.5 TopographicSurveys andLaboratory Services ....................... 4 1.6 Exploration/MiningCompanies .............................................. 5 1. 7 GGMC/UNDPInstitutional Support Programme ................... 6 1.8 PetrologicalLaboratory ........................................................... 6 1.9 UNDPInstitutional Support .................................................... 8 1.10 The Chemical Laboratory........................................................ 8 1.11 UNDPInstitutional Support to the GGMC ............................. 9 2. THEOTHER MINERALS UNIT .................................................... 10 2.1 CeramicRaw Materials ........................................................... 10 12 3. MINES DIVISION ............................................................................. 3.1 Inspectorate .............................................................................. 12 3.2 Mines Technical (Production) .................................................. 23 27 4. ADMINISTRATIVEDIVISION ...................................................... 4.1 Personnel& IndustrialRelations Department ........................ 27 4.2 Services Division .................................................................... 29 4.3 Informationand Publication Section...................................... 30 5. FINANCE DIVISION ....................................................................... 33 1986 FINANCIAL STATEMENT 1. GEOLOGICAL SERVICESDIVISION Introductory Summary For the Geological Services Division, the main activities planned for 1986 were:- i) Geological exploration to uncover promising gold and diamonddeposits for further exploration and development by foreignand local capital. This included the GGMC-DPRK ArakakaGold Project and the GUYMINE-GGMCMarudi Mountain Project. ii) Geological investigation and inventorisation of ceramicraw materials - clay and feldspar. iii) Mineral promotion a) Active promotion of gold and diamond prospects, for development by foreignand local groups;the Upper Konawarukand Marudi Mountain prospects arethe prime targets for promotion; b) Literature researchand preliminary evaluationof gold and diamond prospects; c) Involvement in the UNDPsponsored Mineral PromotionProject. iv) Completion of the new geological atlas of Guyana. v) Monitoring the activities of companies involved in mineral exploration. vi) Overall supervision of the UNDP-DTCDlaboratory support project. vii) Geological Services - advisory and practical (contractual). viii) Supporting laboratory and topographicsurvey services. Geological exploration, which accounted for a substantial part (44%) of the Division's Budget, was hardesthit by budgetarycuts, and indeed due to the Commission's poor financialsh owing, no fundswere allocatedfor exploration. Consequently,efforts were concentrated on in-house activities of literature research and evaluation and the active promotion of mineral prospects, compiling the new geological atlas, and supporting laboratory and advisory geological services. 1 Field activitieswere limited to involvement in the MarudiMountain. The Arakwai Feldspar,the Arakaka Gold andthe 9 Mile Issano Projects,visits to the operationsof mining companies, anclbrief reconnaissance visits undertaken with prospective foreign investors, or local governmentagencies. The professionalstaff was actively engaged in updating and upgradingmany of the gold prospect profiles. Work on the revised geological and mineral maps of Guyana continued. While the Commission's financial standing remains tenuous, field activities was limited to the joint GGMC-DPRK. Arakaka gold project, with financial support from the centralgovernment. The CeramicRaw Materials Characterisation project proposal has been approved at the October 1986 Board Meeting of the IDRC (International Development Research Institute). The Commission andGuymine areactively seeking a technical and financialpartner to complete exploration works at Marudi Mountain leading to the feasibility assessment stage. 1.1 Geological Exploration The unavailability of fundsfor exploration precluded all fieldactivity planned, except at Marudi Mountain where exploration costs were met by GUYMINE. In spite of many setbacksdue to bad weather, poor transportation, logistic services, and technical problems, the adit finallyreached its targetin June at a length of 500 m (601 ft). Channel and bulk samples were taken over its entire length with concentrated bulk sampling at the end of the adit, where intersection with the better mineralised section was targeted. Samples have been analysed for gold content and metallurgical properties. The analytical results has formedthe basis of a preliminary evaluation of the deposit. Since NORANDA's withdrawal late on 1985, GGMC and GUYMINE have been actively seeking a technical and financialpartner to complete the Phase 1 evaluation work, and to continue into Phase 11, the detailed evaluation and feasibilityassessment stage. Five D.P.R.K techniciansarrived in Guyana in May, 1986, to activate the GGMC­ ZonghabselbiContract, to work out the financialand operational details of the project, and to initiate the field project. The technicians arrived before the promised equipment for exploration andmining. Since then the company purchased locally from Farrel Engineering - mining equipment comprising a six inch gravelpump, sluices and accessories. 2 The Guyana Geology and Mine Commission has stressed the necessity for exploration andfeasibility evaluation prior to mining. The equipment fromthe D.P.R.K - 2 bulldozers, one 4 wheel drive vehicle, 60 H.P and120 H.P engine, pump andaccessories which is due to arrive by the end of September, 1986, represents a significant part of Zonghabselbi's contractualcommitment to the project. Serious efforts were made to obtain funds from the IDRC for the ceramic raw materials project. To date, the project proposalhas been favorablyreceived: the proposal for a joint GGMC-IAST-IDRCAlberta Research Council project has been finalisedin Canada by IDRC Board in October 1986. 1.2 Mineral Promotion The possibility of involvement in the local gold and diamond mining sector was discussed with governmentaland private groupsfrom the U.S, Canada,Brazil, GDR, USSR, Japanand Guyana. The most promising was the bid forthe development of the middle Ireng River by COEST/SA of Brazil, and Niemertz's of the U.S persistent interest in Marudi Mountain. Other note worthy groups were Metalia S/A of Brazil, part of the Brazilian trade delegation's visits to Guyana on April 29 - 30, 1986 andMay 6 - 7, 1986, whose special interest was gold deposits along the Georgetown-Takutu road alignment; the GDR Government,who were encouraged to consider the Tikwah andTamakay gold prospects, together with diamond deposits in the Middle Mazarauni area and local business group, Toolsie Persaud Ltd; with an interest in the Honey Camp, East Kaburi and Groete Creek Deposits. The Division has seen especially encouraging interest in the MarudiMountain. and Upper Konawaruk prospects. With its serious logistics problem, Marudi Mountain. is favouredfor development by a Braziliangroup (COEST/S.A or Oro-Braz)who could then supply the exploration andmining activities directly fromBrazil. The Upper Konawaruk·deposit has proven alluvial reserves of 2 million cubic metres 3 with average gradeof 0.1699 g/m · It has been demonstrated,that these reserves can support aneconomically viable mining operation based on the reactivation of the 10.5 cu.ftbucket wheel dredge abandoned in the middle Konawaruk river. Independentfeasibility assessments have beencompleted by RUDIS of Yugoslavia, UN Consultant,Mr. M. Richardson andthe GuyanaGeology and Mines Commission. The GGMC envisages that a capital outlay approximately US$3,000,000 is needed to put the Upper Konawaruk deposit into production. 3 In view of the paucity of field activities, the geologists were deployed in literature research forthe identification and evaluation of gold and diamond prospects. Profiles were compiled for several prospects, including Wakadanawa Savannah, Tappa-Karibang,ltaki-West Kaburi-Okuwa Goldfield,Maikwak-Kopinang Valley, Siparuni­ Muruwa-Essequibo Region, Arnik, Emoy Goldfield, Mariwa-Sardine Hill deposit, Appaparu-Kanaimapu Goldfields, Quartzstone-Sodam Mountain gold prospects, Aranka Gold Copper prospect, the minor gold prospectsof SouthernGuyana, Groete Creek deposit, Aurora goldfields. An exploration programmefor gold and diamondswas preparedfor the middle Ireng placers. A paper on "Indications forprecious-stones, semi-precious stones and heavy minerals" in Guyana was preparedas a guide to fieldprospection. 1.3 UNDP Mineral Promotion Project An integralpart of the MineralPromotion Project was the preparationof profiles on selected gold and diamond prospects. Thesewere revised by UN Consultant to the Project, Dr. H. Drechsler during his visit to the GGMC on May 4 to 16, 1986. Following Dr. Drechsler' s recommendations, the profileswere revised to confirmwith a formatwhich was more promotion oriented. A significant development was the clustering of prospects